Fending off competition from discount chains while watching third- quarter profits drop by 28 percent, Safeway must now contend with an even bleaker picture in the fourth quarter, as its striking workers in Southern California threaten to drive down sales.

Wally's doing a number on the local stores around here, too. The chains are responding by stocking more of their house brands. Be interesting to see how this shakes out. It's definitely cheaper to buy groceries at Wally, though I won't buy their meat (crammed full of preservatives to lengthen shelf life).

The local Safeways are clean, well-run, and the employees are courteous to the point of annoyance. But, their prices are too dang high. If they want to compete, they're going to have to figure out a way to lower their prices. Albertson's prices are also sky-high.

yes.i work for one of these giants that are being picketed and we have a wal-mart near us and its killing us...the meat manager says thats why wal-mart tries so hard to keep the unions out....they know whats coming if unions are voted in....higher pay scales,paid vacations,health benefits and paid holidays...my store provides all that and is competing with a store that has none of that baggage....

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